Question

Charlotte is a librarian who has a taxable income of $69410. The tax payable on the first $37000 is $3572 and the balance was taxed at the rate of 32.5%. How much does Charlotte have to pay in tax, to the nearest dollar?

Answer 1

Charlottte has to pay `$14105` in tax.

Explanation:

Taxable Income `I=$69410`.Tax on first `$37000=3572`

Tax rate in excess of `$37000` is `32.5%`

Tax, `T= 3572+(69410-37000)*0.325=$14105.25`

Charlottte has to pay `$14105` in tax [Ans]